 Live from the Frederick P. Rose Hall, home of Jazz at Lincoln Center in New York, New York, it's theCUBE at IBM Z Next, redefining digital business. Brought to you by headline sponsor IBM. Hi, buddy, welcome back to Jazz at Lincoln Center. This is theCUBE, we go out to the events, we extract the signal from the noise. This is a special event here where we're covering the IBM Z Systems announcement, 13th generation of Z. Marie Week is here, she's the general manager of mobile at First and WebSphere architectures, and also we're joined by Julie Osk, who's an analyst at Forrester Research and the author of the Mobile Mindshift. Ladies, welcome to theCUBE, it's great to see you. Thank you very much, it's a pleasure. So, Marie, I want to start with you. So, mobile is obviously one of the big themes here. People don't generally think of the mobile mainframe. How should we be rethinking the mainframe? Well, the whole notion of providing a mobile first experience because it's now the primary means by which people communicate, get information, transact really means that it has to connect to everything. And that insight that can be drawn from mainframe transaction systems, from the data that is stored, the connection between systems of record and systems of engagement really makes a very powerful combination for insight in the moment so that you really can experience that kind of mobile context. Okay, so everybody talks about mobile first. Skeptics in the say, okay, that's good marketing. At what point did IBM generally and specifically your group and the Z group decide, okay, we've got to go mobile and how much of that sort of investment came into this announcement? Maybe you take us back. Back, sure. Give us some proof points. So, we launched our mobile first initiative and our whole strategy and marketing campaign in a big way about two years ago. But even before that, we had been engaging from a mobile perspective and working with the systems team to optimize the connections between those. Because what we find is the real differentiator is that integration. How do you bring data in context? How do you integrate the backend systems with the front end experience? How do you design for the mobile tasks that you really need to do every day? So, we started optimizing our software and the integration points to the Z systems, whether it's IMS, whether it's Kix, whether it's DB2 or WebSphere, which run and store much of the world's enterprise data and process over 80% of the transactions right now. So, that optimization has been going on now for almost five years into this new system and has that connection directly. So, Julie, when did the mobile mind shift occur? Talk about your book and your research and how it ties into what Marie was just talking about. You know, absolutely. The basic premise of the mobile mind shift is that customer expectations have changed. Each one of us expects that whenever we need something, we can get anything we want, anytime, anywhere, immediately and in our context. And this is something that we call the mobile mind shift, this customer expectation. Today in the US, 21% of consumers have this expectation and another 29% are in transition. So, within the next couple of years, 50% of consumers in the US will have the expectation that I get anything, anywhere, anytime on my mobile phone. And to follow up on Marie's point, why the back end infrastructure and the speed and the availability is so important, consumer expectations have changed in three ways. The first is consumers expect immediacy. Like, I want it now. I want it in seconds. I don't have minutes to wait. We expect this phenomenal simplicity and we expect things to be highly contextual, relevant to me, nearby me, all about me. So, and this is based on research that you did when you were at Forrester and then you turned it into a book. So, the 21% that expect it now, 29% almost happen. I feel like that's understated, right? Because this is predictive. I mean, don't you think within a couple of years that even within a year, maybe this year, that everybody's going to have that expectation? What are your thoughts on that? So, one of the things that we think about, we think about, are you shifted? All of us communicate on our mobile phones. A lot of us consume media on our mobile phones. But it's the, I rely on my mobile phone for everything. Expect my mobile phone to do everything. That is the next step. A lot of us, okay, we shop on our phones today. We do banking. I track how many steps my dog takes a day on my mobile phone. I track the temperature in my home, right? I pay bills with my mobile phone. Those are some things that other consumers are still getting to. Okay, so that's sort of the metric there. It's not just the desire. It's a mindset too. It's an expectation. More than it is an observed behavior today. But it's also turning it into action. That's really the sort of the delta. We have our clients changing the way in which they develop applications. I mean, you hear about, oh, let's even take simple websites. Are we responsive design versus actually designing from mobile? What's happening in your world from an application development standpoint? Well, we certainly have been engaging over 6,000 clients so far. And we see a real range of development styles. Everything from mobile web to native experience and native development. And what we see more and more is people really want that contextual based experience and design simplicity. And to get that and the speed they want, we're seeing more and more focus on native development. But with that connection, we call it a system of insight connection so that they really can get all of the tasks broken down into the services they need and connected to all those backend processes and informations and do it securely and do it with speed and scale. So let's talk about that a little bit. When you say native development, you're talking about backend connection that end-to-end piece, exclusive mobile experience. I'm talking about it directly on the mobile device. So as a result of our partnership with Apple around our mobile first initiative, we're actually doing native Swift development for new mobile apps that are really transforming the way people work and how they can break down the barriers of a mobile process and really change it so that it's in context and delivering that experience. So you were going to add something to that. Yeah, so it's a really important point because with the browser experience today, that's fundamentally about consistency of experience across devices. If you have a browser experience, if you're using responsive design, in some ways, in a lot of ways really, you're assuming that the needs I have as a consumer are consistent, whether I pick up a PC or I pick up a phone. When we start talking about native app development and the work that IBM is doing, they're really focusing on the needs of consumers and employees who are on the go where my needs and motivations are really very different than if I'm sitting behind a desk or sitting at home on a PC. And that's one of the reasons native applications are so important for the experience as we look forward. That's where the power is and fundamentally transforming the experience. I mean, I feel like a responsive design is sort of a Swiss army knife of websites. Okay, it's okay on the big screen. It's okay when I shrink it or even I make a trade-off. I'll say, okay, I'll make it better for mobile so I'm taking away from, so you're saying the clients are understanding this. And what's critical is you want to have a consistent brand experience. I want to get the same information and the same brand value, whether I'm on a website, whether I'm in a store or whether I'm on my mobile device. So the integration has to be seamlessly connected and the same, but the experience can be different. And that kind of omnichannel support and really optimizing for the device where you are is what we think sets us apart. It sounds like you're saying that the experience should be different. I can't see things side by side on mobile. Right. Can you have, you have to optimize. Consistency doesn't mean the same. Right. Consistency means you know who I am, you save my payment information, I've got one loyalty card, regardless of how I engage with you as a brand. But my experience has to be based on what my needs and my context are in that moment, what we call a mobile moment. So I observed just as a user that a lot of the mobile applications are neutered, they're minimalist, which is good, but a lot of times the function's not there. Are we going to solve that problem or is that not a problem that should be solved? What's your angle in that? A lot of the next generation mobile experiences depend very heavily on the backend infrastructure on web services and APIs. And a lot of the work that Marie's team does, we estimate that companies will spend $189 billion building out that infrastructure in the year 2017. It's expensive and it's hard to do and the lack of infrastructure is the number one reason brands can't move forward and do the kinds of things they want to do on mobile today. Well, and I would imagine your clients are thinking about rebranding, whether it's logos, messaging, offerings, I mean. And I don't think it's so much about the branding. I think it is about the experience and what value, what loyalty you get from delivering it in context. So we've introduced over 100 strategy elements that we're using as mobile first solutions that provide the app framework to then connect to those backend systems. We're providing the new Z13 capabilities to directly connect those APIs so you have both the speed and power of data on that scale with the design experience and simplicity on the device. That's a really powerful combination. That ties into your Apple relationship. Eight year of the iPhone, I just heard. So, and these are unique applications. It's not the flashlight. These are things that are hard problems. These are business solutions for enterprises. That's right, like I said, people on the go. Exactly. Julie, last word, put on your binoculars. What can we expect? You gave us some sort of near term numbers, but what's the world going to look like in five years? So today, a lot of these mobile moments that we talk about are on our cell phones. But as we go forward, they're going to be part of the products that we buy, wearable devices. We're soon going to peak here in terms of the smartphone being the center of our universe. And this is going to become a very distributed set of products and services that we have. And the world will look very different in five years than it does today as a result. And Marie, bumper sticker on this event. What's your bumper sticker? As the trucks are pulling away. I would call it the mainframe mobile moment. That it really is the combination in how we bring those two together so that we really can deliver enterprise class mobile experiences. Mainframe meets mobile, who knew? All right, thanks very much. Appreciate you guys coming on the queue. Thank you very much. All right, keep right there everybody moving back. Jazz at Lincoln Center, this is the IBM Z systems announcement. We'll be right back.